29 Apr 2015
Gold might dip further due to profit-taking – FXStreet
FXStreet (Barcelona) - FXStreet Editor and Analyst, Dhwani Mehta, believes that XAU/USD is likely to see a dip towards 1205 and even 1200 as the precious metal will remain sold due to profit taking ahead of the crucial FOMC meeting.
Key Quotes
“Currently, XAU/USD failed to sustain above 100-DMA located at 1211.56 and retreated to 1210.11 levels. The pair trades in a narrow range and edged lower today largely on profit-taking as traders preferred to unwind their XAU longs before crucial US Q1 2015 GDP data and FOMC statement due to be released later in the day.”
“The US dollar also took a breather in its rally and poses a mild rebound, corrective previous heavy losses.”
“The daily RSI has turned lower indicating the profit-booking spree to extend in the session ahead with XAU/USD find next immediate support at 1205 (April 22 High) levels, below which the pair could retest the channel trend line resistance-turned support located at $ 1200.”
“The upside seems limited below 100-DMA, although a break above that levels, XAU bulls may take full control and retest previous highs at 1215 levels.”
“However, the major driver for today’s trade is expected to be the key FOMC event which may provide fresh insights on the pair.”
Key Quotes
“Currently, XAU/USD failed to sustain above 100-DMA located at 1211.56 and retreated to 1210.11 levels. The pair trades in a narrow range and edged lower today largely on profit-taking as traders preferred to unwind their XAU longs before crucial US Q1 2015 GDP data and FOMC statement due to be released later in the day.”
“The US dollar also took a breather in its rally and poses a mild rebound, corrective previous heavy losses.”
“The daily RSI has turned lower indicating the profit-booking spree to extend in the session ahead with XAU/USD find next immediate support at 1205 (April 22 High) levels, below which the pair could retest the channel trend line resistance-turned support located at $ 1200.”
“The upside seems limited below 100-DMA, although a break above that levels, XAU bulls may take full control and retest previous highs at 1215 levels.”
“However, the major driver for today’s trade is expected to be the key FOMC event which may provide fresh insights on the pair.”